Marketing Acronyms

Annual Recurring Revenue (ARR)

Annual revenue

What does it mean:
Used in subscription-based businesses it’s your current expected annual revenue based on current Monthly Recurring Revenue (MRR).

The Formula:

Monthly Recurring Revenue (MRR) x 12 months = ARR

Use it in a sentence:

To colleagues:

“If we can just get to $5M ARR we are almost at break-even.”

To investors:

“We are doubling our ARR year-over-year thanks to our large distribution partners.”

At a party:
“Did you hear about that startup that hired an actual pirate on the marketing team? They thought it might increase their ARR.” 

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